Pre-Loved Luxury Set to Hit $367 Billion by 2029: What It Means for South African Shoppers

Pre-Loved Luxury Set to Hit $367 Billion by 2029: What It Means for South African Shoppers

The global pre-loved luxury market is experiencing unprecedented growth, with projections indicating it will reach $367 billion by 2029, growing at a compound annual growth rate (CAGR) of 10%. This surge is driven by a confluence of factors, including economic pressures, sustainability concerns, and technological advancements.

Economic Shifts Fuelling Resale Growth

Economic uncertainties and rising apparel costs are prompting consumers to seek more affordable alternatives. According to ThredUp’s 2025 Resale Report, 59% of consumers stated that if tariffs and trade policies make new apparel more expensive, they would opt for pre-loved options. This figure rises to 69% among Millennials, highlighting a significant shift in purchasing behaviour.

In the United States, the pre-loved apparel market grew by 14% in 2024, marking its strongest annual growth since 2021 and outpacing the broader retail clothing market by five times. This trend reflects a global movement towards more cost-effective shopping habits.

Digital Platforms and Social Commerce Driving Adoption

The integration of digital platforms and social commerce is revolutionising the way consumers engage with pre-loved luxury. In 2024, 39% of younger shoppers purchased pre-loved apparel through social commerce platforms, with half of Gen Z and Millennial buyers acquiring items to create content or share on social media.

Retailers are responding to this shift, with 94% of retail executives reporting that their customers are already participating in resale. Additionally, 32% of pre-loved shoppers in 2024 purchased directly from a brand, and nearly half (47%) of Gen Z and Millennial consumers did the same.

Artificial Intelligence Enhancing the Resale Experience

Artificial intelligence (AI) is playing a pivotal role in enhancing the pre-loved shopping experience. Currently, 48% of consumers believe that AI-powered personalisation, search, and discovery make shopping pre-loved as easy as buying new. Retailers are investing heavily in AI, with 78% already making significant investments and 58% planning to launch AI-powered tools in the next year.

These technological advancements are streamlining the resale process, making it more accessible and appealing to a broader audience.

Implications for South African Consumers and Retailers

For South African consumers, the global shift towards pre-loved luxury presents an opportunity to embrace more sustainable and affordable shopping habits. The rise of online resale platforms and social commerce provides access to a wider range of high-quality pre-owned apparel, catering to diverse tastes and budgets.

Retailers in South Africa can capitalise on this trend by integrating resale into their business models, leveraging AI to enhance the customer experience, and engaging consumers through social media. By doing so, they can tap into a growing market segment that values sustainability, affordability, and individuality.

The pre-loved luxury market is poised for significant growth, driven by economic factors, technological innovation, and evolving consumer values. For South African shoppers and retailers, this presents a timely opportunity to embrace more conscious fashion consumption. Participating in this global movement not only supports sustainability, but also opens the door to a rich and affordable world of unique style.